In this chapter, we consider the extent to and ways in which business and urban informality are connected to business innovation. We highlight the home as a locus of innovation, albeit innovation that is adaptive and incremental. In contrast, the neighbourhood or kampung appears less relevant as a supportive setting for business innovation though neighbourhood communities may benefit from innovation at the level of individual businesses. Business and urban informality make some contributions to the circularity of urban economies in Indonesia, though these are constantly shifting as a result of urbanisation and its formalisation.